It was the U-turn of all U-turns when Google backtracked on removing third-party cookies from its Chrome browser in July. Does this mean you can now sit back with a sigh of relief and stop searching for an alternative to third-party cookies?
Absolutely not!
Google has been vague on what will happen going forward but has ultimately stated that it will give users more choice when it comes to third-party cookies, allowing the user to opt-out if they choose.
The problem advertisers face is that all the fearmongering surrounding third-party cookies and privacy encroachment means that when that user gets that first notification asking if they want to accept or reject cookies, they are likely to opt-out.
There is a lot of disdain for cookies. Just take a look at the figures in the Drum’s Data & Privacy Playbook:
- 70% of consumers restrict personal data by limiting cookies while browsing online
- 18% completely opt out of cookies daily
- 40% of users utilise a Virtual Private Network (VPN)
Google has stated that users can change their decision at any time, but the original choice to accept or reject cookies is going to be crucial, as it is unlikely users will change their initial decision. Additionally, many people simply don’t understand what cookies are, leading to further confusion and more rejections. With so many likely to opt-out, will third-party cookies be as powerful a tool as they once were?
Are cookies less enticing now?
Google has been stuck between a rock and a hard place trying to appease privacy advocates and keep the ad industry happy. They’ve been working on testing their Privacy Sandbox (the replacement for third-party cookies), but the backtracking on deprecating cookies suggests that the tests haven't been quite as successful as they’d have liked.
Many companies have been testing out alternatives going forward and should continue to do so. Why? We all need to stop relying so heavily on third-party cookies. Consumers will always want privacy and will continue to push for it. Google could also backtrack again and remove third-party cookies at some point in the future. Especially if they come under further fire from regulators and consumers.
What is the alternative to third-party cookies?
Google has long dominated the internet. Advertisers have become reliant on its solutions. There were concerns that Google’s Privacy Sandbox would again just give Google the means to dominate the arena.
Many companies have already started executing alternatives. One such alternative is collecting first-party data. This is the most valuable data because it’s both accurate and reliable, allowing for more targeted and personalised campaigns. It also helps build customer trust and ensures compliance with privacy regulations. Interestingly, IBA’s State of Data report for 2024 found that 71% of brands are planning on growing their first-party data sets (double that of two years ago.)
What other alternatives are there? Contextual advertising, for example amongst others, enables your ads to appear on the relevant sites. Contextual advertising only works if you have a robust and precisely defined audience segment. At TwentyCi, we focus on targeting a specific segment - the home mover. It’s tried and tested - and it works! Moving home triggers a surge in retail spending. A savvy retailer will be targeting that consumer over any other because simply put, they have a higher order rate and a higher average order value. The home mover needs new furniture, new windows, a new kitchen and so on… there’s even a link between moving home and buying a new car. It’s the ultimate time for ‘out with the old, in with the new.’ If you want to find consumers who will spend, the home mover is the answer.
See how we have used this strategy for one of the largest UK bed and mattress retailers, resulting in a 50% revenue uplift here.
Conclusion
This reversal on ending third-party cookies has highlighted just how important it is for advertisers to reduce their reliance on cookies. While this strategy may have worked in the past, third-party cookie data has always had its flaws such as holes in the data. With increasing numbers of consumers concerned about online privacy, more will reject cookies when prompted. Relying on third-party cookies may be viable in the short term, but it is not a long-term solution. As consumers continue to demand greater privacy, the industry must prepare accordingly. Future-proof your business by exploring alternatives to third-party cookies. If TwentyCi’s solution interests you, we'd love to hear from you. We're experts in home mover marketing and home mover data.